CAPITAL EXPENDITURE DRAGGED YEAR RESULT

Australian data center operator NextDC, has awarded the contract for the construction of its 20MW hyperscale data center P2, to Multiplex.

Located in Perth, the new hyperscale facility P2; will now have its first stage delivered by Multiplex as specified in the contract. The cost of the project was not disclosed.

The first stage or Stage 1, covers the construction of six levels of data halls, two levels of electrical infrastructure and back-up power generation capable of delivering the energy required to maintain uptime. This stage also includes perimeter security, basement services, car parking and customer experience office facilities.

“Multiplex are one of Australia’s largest and most highly regarded builders. Their global leadership in delivering premium quality infrastructure closely aligns to our values and rigorous standards,” said Simon Cooper, chief operating officer of NextDC.

P2 is expected to deliver 108,000 square feet of technical space and as much as 20MW of capacity upon full build to the West Australian economy. The first stage of this facility which is now awarded to Multiplex, is coming after the company successfully delivered early works on the project, including the adjacent microsite which is currently providing immediate connectivity to critical cloud services. Multiplex has also promised to deliver P2 as the first Western Australia Uptime Institute Tier IV certified data center.

“P2 is a crucial piece of digital infrastructure for Western Australia and we’re very proud to bring this complex building to life. Our team is working to exceptionally high design and construct standards to deliver the first Uptime Institute Tier IV certified data center to Western Australia,” said Chris Palandri, regional managing director, Multiplex.

The contract was awarded shortly before NextDC announced its full-year financial report. The report showed that the company recorded a net loss for the year. However, this is accredited to the increased capital expenditure made to expand the company’s data center estate across Australia.

According to the report, NextDC revenue was up annually by 15% to A$179.3 million (US$120.5m), and underlying EBITDA was up 13% to A$85.1 million.

Underlying capital expenditure jumped to A$378 million from A$285 million in 2018 report, and there was a group net loss of A$9.8 million compared to a net profit of A$6.6m last year.

Based on the new contract with Multiplex, Stage 1 of the P2 data center facility is targeted for completion by mid-next-year.